Market Response Analysis: The Demand System versus Non-Restricted Marketing Models

There are different views on the specifications of market share models between economists and marketing researchers. The paper made a multi-criteria comparison between the two well-known demand system models, the AIDS and Translog model that are subject to the symmetry and homogeneity restrictions, and the two-market response models in which the symmetry and homogeneity restrictions are not imposed. The results indicate that the two-market response models outperform the two demand system models. This implies some underlying assumptions on which the demand models are derived are not satisfied for the Australian domestic meat market